ADE, the UK’s largest non-profit trade body for demand and heat networks, has welcomed the Energy Independence Bill introduced to Parliament today, saying it sets a clear direction towards cheaper bills. But the trade body warned that the Bill’s success will depend on how Ministers use the powers it creates.
The Bill gives Ministers new levers to strip out policy costs that penalise households and businesses for using electricity flexibly. It also creates powers to cut heat network operating costs while requiring savings to be passed on to customers and begins to clear the planning barriers that delay grid connections. The Government says the legislation will put affordability at the heart of the energy system.
The ADE said primary powers alone do not change outcomes and that the detail will be set in secondary legislation. It urged Ministers to engage with industry early to get the rules right.
Aaron Gould, Interim CEO of ADE said:
“This is a welcome Bill with a clear direction of travel for cheaper bills, cleaner power and more control for consumers. It gives Ministers strong levers to strip out policy costs that penalise energy users for using electricity flexibly and it could cut heat network costs while ensuring savings reach customers. It also starts to clear the planning and consent barriers that hold back grid connections.
Powers are not policy; the next big test will be the secondary legislation and whether Ministers are willing to work with industry to get the details right. If they do, this could be the foundation of a cheaper, cleaner, more secure energy system.”
ADE stands ready to work with the Department for Energy Security and Net Zero and Ofgem to develop the secondary legislation needed to use the Bill’s powers to benefit consumers.